Heritage Hill owner threatening to walk out

Wednesday

Dec 5, 2007 at 12:01 AM

LAKEVILLE — John Pavao is threatening to "walk out" on Heritage Hill Country Club if he is not allowed to subdivide and sell at least four house lots there. Mr. Pavao, CEO of Florida-based real-estate investment firm JPS Investments Group Inc., said he can only secure a $2 million mortgage on the country club if he develops some of the land.

JOAO FERREIRA

Due to a reporter's error, this story incorrectly described the financial history of club owner John Pavao of Florida. He said that while he did lose many of his assets, he never sought bankruptcy protection in settling his debts.

LAKEVILLE — John Pavao is threatening to "walk out" on Heritage Hill Country Club if he is not allowed to subdivide and sell at least four house lots there.

Mr. Pavao, CEO of Florida-based real-estate investment firm JPS Investments Group Inc., said he can only secure a $2 million mortgage on the country club if he develops some of the land.

He said no one wants to lend him money for the subdivision due to the mortgage foreclosure crisis.

"This is the way I've got to do it," Mr. Pavao said. "If I don't get at least four (house) lots, basically there's no deal."

That means he would allow his lender to foreclose the property, he later said.

Mr. Pavao bought the 64-acre golf course at an auction in June for $1.5 million, spent $200,000 renovating it and reopened it in August.

He said the business stands on shaky ground and he wants to create seven 70,000-square-foot lots with 170 feet of frontage on different corners of the property to increase its revenue and qualify for a mortgage.

Mr. Pavao had believed he could create four standard subdivision lots through what is known as a form-A subdivision and three others through a variance.

But the Planning Board told Mr. Pavao Monday that he has to seek a variance from the Zoning Board of Appeals to subdivide any part of the land because the golf course was built under a special permit in 1972.

"That's not a residential area. That's a piece of property that is under a special permit," planner Brian Hoeg said.

Mr. Pavao's plan is being stiffly opposed by neighbors, who silently filled the Lakeville Public Library for the Planning Board meeting with Mr. Pavao, as well as the board's previous meeting, which Mr. Pavao did not attendr.

"I understand that the neighbors don't like this idea of mine," Mr. Pavao said.

Mr. Pavao met three times with neighbors and offered the $200,000 lots to them before that offer went public, but they were not interested.

He later offered to sell the golf course, which has been appraised at $2.9 million, for $2 million to neighbors.

"Two million and I walk away," he said he told neighbors.

No deal.

About 50 neighbors were on hand Monday to listen to Mr. Pavao's presentation, but there was no public comment, and they quickly filed out of the meeting after the Planning Board said Mr. Pavao will have to go the zoning board.

However, at the meeting in late November, many neighbors voiced strong opposition to the proposal.

Mr. Pavao, who flew in from Florida to appear before the Planning Board on Monday night, said he now will try to obtain a variance from the zoning board that will allow the subdivision, despite continued opposition from neighbors.

"I'm trying to salvage this deal and trying to save the money I put in it," he said.

Mr. Pavao, an Azorean immigrant who once owned a landscaping business in Dighton, said he moved to Florida with his family after going bankrupt and is now involved in a real-estate investment business that involves buying distressed properties at auctions at a low price and flipping them at a high profit.

For example, he purchased the former Fall River police station for $160,000 last year and is selling it for $695,000.

Mr. Pavao said he never uses his money in the deals, but instead uses short-term loans.

Mr. Pavao said he "fell in love" with Heritage Hill when it became available last spring and, instead of flipping the property, he kept the business.

The country club had been closed since the previous owner, William J. Raynor, killed himself and his wife, Barbara, in their Lakeville home last February.

Mr. Pavao now says he did not do his homework before buying the property, which he said he hoped would become profitable in two years.

"I bought this with my eyes closed," he said.

Mr. Pavao still owes more than $25,000 to the town for back taxes owed by the Raynors, as well as $1,100 for percolation tests on the property.

He said he also owes money to the contractors who have done renovations at the country club.

The grounds still need work, and plans to open a restaurant and function hall on the site have not materialized.

Mr. Pavao said everything now hinges on creating at least four house lots on the land to qualify for a mortgage.